Merchandising as a marketing activity – benefits, functions and types


  • ZhB Smagulova Республика Казахстан
  • M Abdugafarova Республика Казахстан


The activity of promoting the sale of goods at retail.Merchandising activities may include display techniques, free samples, on-the-spot demonstration, pricing, shelf talkers, special offers, and other point-of-sale methods. According to American Marketing Association, merchandising encompasses "planning involved in marketing the right merchandise or service at the right place, at the right time, in the right quantities, and at the right price."[1]Benefits of Merchandising. Some small business owners hire professional visual merchandisers to come in and spruce up their displays and selling floor, finding that the cost is well worth it. But merchandising goes beyond just moving inventory around, to space planning and product staging. Effective merchandising yields: Higher sales, Faster inventory turnover, Buyers who spend more time in the store, More satisfied customers, Increased customer loyalty [2]. Types of Merchandise: Merchandise can be broadly classified under following heads: 1. Staple: These are necessaries of life that are used everyday (Food, Clothing, Stationery, Cosmetics, toiletries).They have regular and stable demand. Fluctuation in demand supply and price is minimum. 2. Fashion: Consumption of these goods is dependent on current fashion. Depending on nature of goods, fashion may be for seasons or years. Retailer has to stocks the product until the fashion lasts. If the stock remains unsold as goods become out of fashion, has he has to adopt marketing strategy like discount, ‘buy one get one offer’ to clear stock. 3. Fads:Goods that are in demand for a very short period of time. It can be said as fashion which lasts for a very short period of time. It is risky to store such goods in bulk quantity as there is no guarantee regarding duration of demand. 4. Seasonal: Goods that are demand in particular seasons. Based on weather features, we can classify seasons as Monsoon, Summer, Winter accordingly specific products like, Umbrella, Sweaters, Cool Goggles, soft drinks, Ice creams etc., are demanded accordingly the product is to be stored. Similarly season of festivals, marriage have its own demand for sweets, Jewellery, Clothing, etc.


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How to Cite

Smagulova, Z., & Abdugafarova, M. (2019). Merchandising as a marketing activity – benefits, functions and types. Pridneprovskiy Scientific Bulletin, 3(611). Retrieved from